The Senate is set to approve President Bola Tinubu's request for a $2.2 billion loan today, which amounts to approximately N1.77 trillion.
This loan is part of the external borrowing strategy outlined to support the implementation of Nigeria's N28.7 trillion budget for 2024.
During a plenary session on Tuesday, Tinubu detailed in separate letters to both the Senate and House of Representatives that the funds would help address a significant budget deficit estimated at N9.7 trillion for the upcoming fiscal year.
Senate President Godswill Akpabio has directed the Senate Committee on Local and Foreign Debts to review the loan request and report back within 24 hours, emphasizing the urgency of the matter.
He stated that this request is already integrated into the 2024 fiscal year’s external borrowing plan.
In addition to the loan request, President Tinubu submitted the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for 2025–2027 for legislative consideration. Akpabio has tasked the Senate Committee on Finance, National Planning, and Economic Affairs with reviewing these documents within a week.
The key parameters outlined in the MTEF/FSP include a projected oil price benchmark of $75 per barrel, an expected daily oil production of 2.06 million barrels, an exchange rate of N1,400 to $1, and a targeted GDP growth rate of 6.4 percent, all crucial for deliberating on the proposed N47.9 trillion budget for 2025.
Furthermore, President Tinubu has introduced an amendment to the Social Investment Programme aimed at enhancing transparency and efficiency in social welfare initiatives.
This amendment proposes that the National Investment Register be utilized as the primary mechanism for identifying beneficiaries of social investment programs. Tinubu asserted that this approach would ensure these programs are data-driven and effectively support Nigeria’s most vulnerable populations.
